FHA Streamline Refinance

Min. FICO 640

If you have an existing FHA-insured mortgage loan and would like to lower your interest rate and reduce your monthly payment, then you should consider an FHA Streamline Refinance from A&D Mortgage. As the name suggests, an FHA Streamline is a relatively speedy and simplified process. No income and appraisal documentation are required as part of the application process.

At A&D Mortgage, we are experienced in these kinds of FHA transactions and we’ll guide you through the entire loan process.

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No appraisal for stick-built properties
Min. 6 payments on current FHA loan
Primary residence

FHA Streamline Refinance FAQ

What is the FHA Streamline Refinance program?

The FHA created the streamlined refinance program over 25 years ago to make it simple and fast for anyone with an FHA loan to lower their interest rates. They do this through a “streamlined” process that utilizes the already existing paperwork from your original loan to serve as the foundation of the process.

What are the basic requirements for an FHA Streamline Refinance?

Besides the original loan is an FHA loan, the only other real requirement is that your client’s mortgage payment must not have been more than 30 days late in the last 12 months.

Can borrowers who have a lot of equity in their home take some cash out at closing with the FHA streamline refinance program?

No, they are not permitted to take any cash out with the FHA streamline refinance loan program.

Is a credit check required?

No, there is no credit check required. This is part of the streamlined process.

Is an appraisal required?

No, we do not require an appraisal for an FHA streamlined refinance.

What are the income requirements?

The FHA streamline loan requires no proof of income like W2s or tax returns. Most other types of loans require the lender must determine the borrower’s ability to afford the new monthly payments. The FHA streamline refinance eliminates this requirement.

Does the FHA Streamline remove PMI?

FHA Streamlines do not remove PMI. PMI is the mortgage insurance borrower’s purchase for conventional loan programs. Mortgage insurance premium (MIP) is the insurance borrower’s purchase for FHA loans. MIP will not be waived throughout the life of an FHA loan.

What is the FHA Streamline minimum credit score?

FHA does not have a minimum credit score requirement since it does not require a credit report for FHA streamlines. However, most lenders will require a credit report and a score of at least 620. Some lenders could allow lower scores, so shop around.

What is UFMIP and does the borrower have to pay it in cash?

UFMIP is the acronym for Upfront Mortgage Insurance Premium. It is the fee that FHA charges on about every FHA loan to defray the costs of the program. As of April 2013, the fee is typically 1.75% of the full loan amount. So, if you open a $200,000 mortgage, your final FHA loan amount will be $203,500.

For FHA streamlines, this fee can be wrapped into the new loan and does not have to be paid out of pocket. If you wish, you have the option to pay it out of pocket, which reduces their loan amount. Most FHA borrowers finance it into the new loan.

How many times can your client streamline refinance?

They are eligible to apply for an FHA Streamline every 210 days.

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